U.S. oil prices are showing signs of resilience in the face of a rise in crude inventories. Despite concerns over reduced demand following a larger-than-expected build in U.S. crude stockpiles, oil futures are attempting to shake off weakness tied to the inventory increase.
Meanwhile, natural gas futures have fallen, with market observers eagerly awaiting the Energy Information Administration’s storage report for last week. Expectations are for a below-average draw from inventories.
Oil prices slipped on concerns over reduced demand following a larger-than-expected build in U.S. crude stockpiles and ahead of key U.S. inflation data. This development comes as oil-and-gas companies are accelerating investments in geothermal energy, aiming to turn the budding industry into a large producer of clean power.
In the energy and utilities sector, companies such as Carnarvon Energy and Meridian Energy are making waves, as detailed in the latest Market Talks covering Energy and Utilities.
The latest data shows that U.S. crude oil inventories rose by 4.2 million barrels last week, surpassing estimates for a rise of 1.5 million barrels. This news comes as Uniper, a company that returned to profitability last year, warns of lower earnings in 2024 due to likely lower energy prices.
Chevron’s $53 billion deal for Hess is facing potential jeopardy due to a possible challenge from Exxon. Woodside Energy, on the other hand, reported a 74% fall in annual net profit, driven in part by impairing assets in the U.S. Gulf of Mexico and Australia.
As for natural gas, it’s currently experiencing historically low inflation-adjusted prices, leading drillers to throttle down from record production.
In other news, U.S. equity indexes are showing a mixed performance, while inflation meeting expectations has sent Treasury yields lower. United Oil has added a Jamaica expert to its team, and Vaalco has made an acquisition. OPEC’s February oil output has risen on a rebound in Libya, while Treasury yields are declining and exchange-traded funds are on the rise. Nordic shares decreased on Thursday, with BW LPG falling the furthest. Finally, a Nymex overview reveals that petroleum futures are closing out February.
